The S&P 500 "looks exceedingly bearish" and could be set to sink 90 points over the next month, Bill McLaren, independent trader, told CNBC Friday.
"For now, our forecast is down and we should run down 30 days and 90 points," McLaren said.
"I don't know how this could look anymore bearish, but it still needs to break some support, which it hasn't," said.
McLaren said he expects the index to fall to between 960 and 1,030 points in a move that could last either 22, 30 or 45 calendar days. The S&P ended Thursday's session lower at 1,096 points after a huge volume spike caused by quadruple options expiration, McLaren pointed out.
The S&P is yet to break below its key support level, meaning the predicted move is not definite yet, according to McLaren.
"There is one bullish thing that could occur from this pattern of trending and that is to break the obvious support and then immediately make a run back to the highs," he said.
- Watch the video above to see Bill McLaren expectations for the dollar index and the FTSE-100.
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